Personal Finance Term Paper:
The Great Recession
Starting in the middle of the year of 2007, there was a bursting of the 8 trillion dollar housing bubble in the United States that lead this country to The Great Recession. This recession officially lasted from December 2007 to June 2009 and resulted in the loss of wealth due to the sharp cutbacks in consumer spending that resulted in a great loss of consumption, that was combined with the financial market catastrophe that started because of the bursting of the housing bubble that brought its country to a collapse in business investment. The consequences as a result of this loss in consumer spending and business investment were dreadful since the unemployment rate greatly increased. Just in 2008 and 2009 alone the U.S. labor market lost an average of 8.4 million jobs. This was the worst recession that the United States has faced since the Great Depression.
("The Great Recession",stateofworkingamerica.org)
The United States government needed to do something to help save its economy and help pull its country back out of recession since the consequences that this recession had on the United States were devastating and affected a countless amount of people. That is the reason why the 111th United States Congress in the month of February in the year 2009 passed the American Recovery and Reinvestment Act of 2009 that was signed into law by President Barack Obama on the date of February 17, 2009. ("American Recovery and Reinvestment Act of 2009", Wikipedia.org)
The American Recovery and Reinvestment Act of 2009 was also commonly known as the Stimulus package or the Recovery Act of 2009. The reason why the USA passed the American Recovery and Reinvestment Act was for the main reason to save and create as many jobs as they possibly...